Premier Rann and Treasurer Foley made no mention of a multi-million dollar Government financial assistance package to Ingham in their public statement on the issue, Shadow Treasurer Rob Lucas said today.
“The Premier, in a number of media statements, has deliberately not mentioned a $46 million State Government assistance package in which the State Government has decided to provide $46 million towards the construction of the factory,” Mr Lucas said.
“The government finance is provided under the Premises SA scheme that involves the recipient generally repaying the funding over 10-15 years.
“The $46m funding is in addition to $7m in grants announced by the State and Federal Governments in November 2005.
“Information provided by the Government to Parliament’s Public Works Committee that the project would have proceeded without the assistance must now be explained by Mr Rann:
“Ingham’s have advised the Government that the project will proceed anyway if the DPA (Deferred Purchase Agreement) is not approved.”
“This financial assistance package together with the almost $50m package given to Mitsubishi are two of the biggest assistance packages ever given by Governments to industry in the state’s history,” Mr Lucas said.
“Mr Rann and Mr Foley have spent eight years attacking the former Liberal Government for what they called ‘corporate welfare’ and for adopting a policy of what they claimed was trying to ‘pick winners’.”
For example, Mr Foley:
“The government has made it clear from day one that we will not be subsidising companies and handing out corporate welfare to the extent that occurred previously. This has shown that selective picking of winners to the extent that occurred previously has come at a very high cost for tax payers … This government’s approach to working in partnership with business, lowering the cost of doing business, making the state more competitive, restoring a triple A credit rating is what drives jobs growth in this state, not the hand-out mentality that proliferated under former premier Olsen.”
Hansard, 14 October 2004
“Mr Rann needs to explain now his secrecy and hypocrisy on this issue and detail the full extent of the taxpayer assistance. It is just another example of where he says one thing and then does the exact opposite.
“The hypocrisy of Mr Rann and Mr Foley on this issue is mind-boggling.”